SPY vs XLII
State Street SPDR S&P 500 ETF Trust vs State Street Industrial Select Sector SPDR Premium Income ETF
Which is better, SPY or XLII?
SPY has been ahead.
SPY has a lower expense ratio. SPY led over 1Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SPY | XLII |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.35% |
| AUM | $823.2B | $15M |
| Dividend Yield | 0.99% | 13.64% |
| Holdings | 1,515 | 8 |
| YTD Return | +13.53%Best | +5.16% |
| 1Y Return | +17.47%Best | +10.09% |
| 3Y Return (annualized) | +22.36% | - |
| 5Y Return (annualized) | +13.21% | - |
| Volatility (annualized) | 11.9%Tie | 11.9%Tie |
| Max Drawdown | -8.9%Best | -10.1% |
| $10,000 over 1.2 years | $12,279Best | $11,303 |
| Fund Family | State Street Investment Management | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jan 22, 1993 | Jul 29, 2025 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 1.2 years row, are measured over the window both funds cover: Jul 30, 2025 to Oct 14, 2026 (1.2 years).
SPY vs XLII growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1.2 years both funds cover.
SPY vs XLII Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and State Street Industrial Select Sector SPDR Premium Income ETF (XLII) is an ETF from State Street Investment Management. Over the past year SPY returned +17.47% while XLII returned +10.09%. Year to date, SPY is up 13.53% versus a gain of 5.16% for XLII.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY and XLII have been equally volatile, both at 11.9% annualized.
The deepest peak-to-trough decline in our data was -8.9% for SPY and -10.1% for XLII. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.55. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SPY charges 0.09% per year while XLII charges 0.35%. On a $10,000 position that is $9 vs $35 annually, a gap of $26 per year that compounds over a long holding period. On income, SPY currently yields 0.99% against 13.64% for XLII.
Holdings Overlap
We hold position weights for 504 holdings in SPY and 2 in XLII, totalling 99.8% and 100.1% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 504 positions we hold weights for in SPY and 2 in XLII, against full books of 1,515 and 8.
You are not choosing between two funds in isolation.
Whichever of SPY and XLII you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SPY or XLII?
SPY has an expense ratio of 0.09% while XLII charges 0.35%. SPY is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, SPY or XLII?
Over the past year SPY returned +17.47% vs +10.09% for XLII, so SPY leads on 1-year performance. Over the longest common window we track (1 years), SPY annualized +18.66% vs +10.75% for XLII. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or XLII?
SPY and XLII have been equally volatile, both at 11.9% annualized. Worst drawdown: SPY -8.9% vs XLII -10.1%.
Should I hold both SPY and XLII?
SPY and XLII have a monthly-return correlation of 0.55, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SPY or XLII?
SPY yields 0.99% while XLII yields 13.64%, so XLII currently pays the higher dividend yield.
Is XLII better than SPY?
SPY has a lower expense ratio. SPY led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.